WordNet-Online
Free dictionary and thesaurus of English. Definitions, synonyms, antonyms and more...
Hint: double-click any word to get it searched!

	Enter your search terms Submit search form
	Web www.wordnet-online.com

Definitions from the Web

Exemption from Withholding

Definition:

Exemption from withholding refers to the situation where an individual is not required to have income tax withheld from their paycheck by their employer, allowing them to receive their full wages.

Senses:

1. Tax Exemption:

In the realm of taxes, exemption from withholding often relates to tax exemptions. It signifies a provision that allows an individual to legally decrease the amount of taxes they owe, resulting in a lower tax liability.

Example Sentence: She claimed several exemptions from withholding to minimize her annual tax payments.

2. Payroll withholding:

The term can also describe a situation in which an employee is exempted from having a certain amount of money withheld from their paycheck for income taxes, enabling them to receive more of their earnings up front.

Example Sentence: His exemption from withholding boosted his take-home pay, providing him with some extra cash each month.

Usages:

Exemption from withholding can be a valuable benefit for taxpayers, as it allows them to have immediate access to a greater portion of their income. It is important to note that eligibility for exemption may vary depending on factors such as filing status, number of dependents, and income level.

Related Products:

For further information and assistance regarding exemptions from withholding, you may consider the following books available on Amazon:

• Tax Exemptions: A Comprehensive Guide
• Mastering Payroll Withholding